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Lending in Serbian dinars falls y/y in Q3 - c-bank

Author Radomir Ralev
Lending in Serbian dinars falls y/y in Q3 - c-bank Source: Statistical Office of the Republic of Serbia

BELGRADE (Serbia), December 6 (SeeNews) - The share of dinar-denominated loans extended by Serbian banks in the third quarter of 2019 fell to 32.7% of total loans, from 36.6% in the like period of the prior year, Serbia's central bank said.

The share of dinar-denominated deposits of households in the third quarter declined by 3.1 percentage points year-on-year to 69.8%, NBS said in a quarterly report on Thursday. 

The total value of local currency-denominated loans accounted for 33.3% at the end of the third quarter, up from 32.8% twelve months earlier.

At the end of the third quarter, the total value of household and corporate deposits in Serbia's banking system amounted to 1.321 trillion dinars ($12.5 billion/11.2 billion euro), up by 106 billion dinars on the previous quarter. The dinar-denominated deposits accounted for 33.5% of the total at the end of September, up from 31.0% in September 2018.

In 2012, the Serbian government and NBS adopted a strategy for the "dinarisation" of the country's economy that aims to achieve a satisfactory level of the use of the dinar in the financial system, in order to improve the country’s financial stability, lessen the risk of exchange rate volatility and reinforce the effectiveness of monetary policy.

(1 euro = 117.542 dinars)